Angola Grants Ten-Year Tax Holiday To Gas Companies

by Lorys Charalambous, Tax-News.com, Cyprus

27 March 2009

The Angolan government is to grant gas exploration companies tax exemptions in order to encourage investment in the country. It is understood that although companies will not pay any tax, they will however have to adhere to new employment rules.

Angola’s government passed legislation on March 24 providing for a ten-year exemption from taxation on the exploration, research and production of natural gas. State-run gas company Songas Natural will oversee the exemptions, signing contracts with firms such as Eni Angola, Exploration BV, Gas Natural West Africa SL, Galp Exploration Petrolifera SA and Exem Energy BV. The law was voted through parliament unanimously, with 172 votes.

The government also passed legislation attaching clauses to the exemption whereby companies wishing to benefit must contribute to the training of Angolan workers. It is hoped that the initiative will boost the number of domestic workers within the industry. Angola is to also redouble efforts to enforce an existing law to ensure that companies domiciled in Angola only employ expatriates when Angolan applicants do not have the required skills.

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